VITAS net revenue was $307 million in the first quarter of 2019, which
is an increase of 5.1%, when compared to the prior-year period. This
revenue increase is comprised primarily of a geographically weighted
average Medicare reimbursement rate increase of approximately 0.6% and a
6.6% increase in days-of-care. This growth was partially offset by a
Medicare Cap billing limitation that decreased revenue growth by 1.8% as
well as the combination of acuity mix shift, fluctuations in net room
and board and contractual adjustments, the combination of which
negatively impacted revenue growth 0.4%, when compared to the prior-year
period.

In the first quarter of 2019, VITAS accrued $3.4 million in Medicare Cap
billing limitations. At March 31, 2019, VITAS had 30 Medicare provider
numbers, three of which have an estimated 2019 calendar year Medicare
Cap billing limitation of approximately $10 million.

Of VITAS’ 30 Medicare provider numbers, on a trailing 12-month basis, 25
provider numbers have a Medicare Cap cushion of 10% or greater, one
provider number has a cap cushion between 5% and 10%, one provider
number has a cap cushion between 0% and 5%, and three provider numbers
have a Medicare Cap billing limitation.

Average revenue per patient per day in the quarter was $191.20, which is
0.2% above the prior-year period. Reimbursement for routine home care
and high acuity care averaged $165.31 and $750.13, respectively. During
the quarter, high acuity days-of-care were 4.4% of total days of care,
22-basis points less than the prior-year quarter.

The first quarter of 2019 gross margin, excluding Medicare Cap, was
22.7%, which is a 102-basis point increase when compared to the first
quarter of 2018.

Selling, general and administrative expense was $21.5 million in the
first quarter of 2019, which is an increase of 5.0% compared to the
prior-year quarter. Adjusted EBITDA, excluding Medicare Cap, totaled
$49.7 million in the quarter, an increase of 16.0%. Adjusted EBITDA
margin, excluding Medicare Cap, was 16.0% in the quarter, which is a
126-basis point increase when compared to the prior-year period.

Roto-Rooter

Roto-Rooter generated quarterly revenue of $155 million for the first
quarter of 2019, an increase of $8.1 million, or 5.5%, over the
prior-year quarter. Revenue from the water restoration service segment
totaled $27.7 million, a decrease of 0.3%, when compared to the
prior-year quarter. Approximately 90% of the water restoration revenue
is generated from residential customers and the remaining 10% is
generated from commercial accounts.

Roto-Rooter’s gross margin in the quarter was 47.0%, a 44-basis point
decline when compared to the first quarter of 2018. Adjusted EBITDA in
the first quarter of 2019 totaled $33.5 million, a decrease of 1.1%. The
Adjusted EBITDA margin in the quarter was 21.6% which is a 145-basis
point decline over the prior year.

Chemed Consolidated

As of March 31, 2019, Chemed had total cash and cash equivalents of $9
million and debt of $100 million.

In June 2018, Chemed entered into a five-year Amended and Restated
Credit Agreement that consists of a $450 million revolving credit
facility. The interest rate on this facility has a floating rate that is
currently LIBOR plus 100-basis points. At March 31, 2019, the Company
had approximately $314 million of undrawn borrowing capacity under this
credit agreement.

During the quarter, the Company repurchased 150,000 shares of Chemed
stock for $49.2 million, which equates to a cost per share of $328.33.
On February 22, 2019, Chemed’s Board of Directors authorized an
additional $150 million for stock repurchase under Chemed’s existing
share repurchase program. As of March 31, 2019, there was approximately
$147 million of remaining share repurchase authorization under this plan.

Chemed restarted its share repurchase program in 2007. Since that time
Chemed has repurchased over 14 million shares, aggregating approximately
$1.2 billion at an average share cost of $83.56. Including dividends
over this period, Chemed has returned approximately $1.3 billion to
shareholders.

Guidance for 2019

Revenue growth for VITAS in 2019, prior to Medicare Cap, is estimated to
be in the range of 5.5% to 6.0%. Admissions are estimated to expand
approximately 3.0% to 4.0% and Average Daily Census in 2019 is estimated
to expand approximately 4.0% to 5.0%. Full-year Adjusted EBITDA margin,
prior to Medicare Cap, is estimated to be 15.9%. We are currently
estimating $10 million for Medicare Cap billing limitations in calendar
2019.

Roto-Rooter is forecasted to achieve full-year 2019 revenue growth of
9.0% to 10.0%. This revenue estimate is based upon increased job pricing
of approximately 2%, continued growth in core plumbing and drain
cleaning services as well as continued but slowing revenue growth from
water restoration services. Roto-Rooter’s Adjusted EBITDA margin for
2019 is estimated at 23.7%.

Based upon the above, full-year 2019 adjusted earnings per diluted
share, excluding non-cash expense for stock options, tax benefits from
stock options, costs related to litigation, and other discrete items, is
estimated to be in the range of $12.65 to $12.85. This 2019 guidance
assumes an effective corporate tax rate of 25.2%. Chemed’s 2018 reported
adjusted earnings per diluted share was $11.93.

Conference Call

Chemed will host a conference call and webcast at 10 a.m., ET, on
Tuesday, April 30, 2019, to discuss the Company's quarterly results and
to provide an update on its business. The dial-in number for the
conference call is (844) 743-2500 for U.S. and Canadian participants and
+1 (661) 378-9533 for international participants. The participant
passcode/Conference ID is 5375966. A live webcast of the call can be
accessed on Chemed's website at www.chemed.com
by clicking on Investor Relations Home.

A taped replay of the conference call will be available beginning
approximately 24 hours after the call's conclusion. It can be accessed
by dialing (855) 859-2056 for U.S. and Canadian callers and +1 (404)
537-3406 for international callers and will be available for one week
following the live call. The replay Conference ID is 5375966. An
archived webcast will also be available at www.chemed.com.

Chemed Corporation operates in the healthcare field through its VITAS
Healthcare Corporation subsidiary. VITAS provides daily hospice services
to approximately 18,500 patients with severe, life-limiting illnesses.
This type of care is focused on making the terminally ill patient's
final days as comfortable and pain-free as possible.

Chemed operates in the residential and commercial plumbing and drain
cleaning industry under the brand name Roto-Rooter. Roto-Rooter provides
plumbing, drain cleaning, and water cleanup services through
company-owned branches, independent contractors and franchisees in the
United States and Canada. Roto-Rooter also has licensed master
franchisees in the republics of Indonesia and Singapore, and the
Philippines.

This press release contains information about Chemed’s EBITDA, Adjusted
EBITDA and Adjusted Diluted EPS, which are not measures derived in
accordance with GAAP and which exclude components that are important to
understanding Chemed’s financial performance. In reporting its operating
results, Chemed provides EBITDA, Adjusted EBITDA and Adjusted Diluted
EPS measures to help investors and others evaluate the Company’s
operating results, compare its operating performance with that of
similar companies that have different capital structures and evaluate
its ability to meet its future debt service, capital expenditures and
working capital requirements. Chemed’s management similarly uses EBITDA,
Adjusted EBITDA and Adjusted Diluted EPS to assist it in evaluating the
performance of the Company across fiscal periods and in assessing how
its performance compares to its peer companies. These measures also help
Chemed’s management to estimate the resources required to meet Chemed’s
future financial obligations and expenditures. Chemed’s EBITDA, Adjusted
EBITDA and Adjusted Diluted EPS should not be considered in isolation or
as a substitute for comparable measures calculated and presented in
accordance with GAAP. We calculated Adjusted EBITDA Margin by dividing
Adjusted EBITDA by service revenue and sales. A reconciliation of
Chemed’s net income to its EBITDA, Adjusted EBITDA and Adjusted Diluted
EPS is presented in the tables following the text of this press release.

Forward-Looking Statements

Certain statements contained in this press release and the accompanying
tables are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. The words "believe,"
"expect," "hope," "anticipate," "plan" and similar expressions identify
forward-looking statements, which speak only as of the date the
statement was made. Chemed does not undertake and specifically disclaims
any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. These statements are based on current expectations and
assumptions and involve various risks and uncertainties, which could
cause Chemed's actual results to differ from those expressed in such
forward-looking statements.

These risks and uncertainties arise from, among other things, possible
changes in regulations governing the hospice care or plumbing and drain
cleaning industries; periodic changes in reimbursement levels and
procedures under Medicare and Medicaid programs; difficulties predicting
patient length of stay and estimating potential Medicare reimbursement
obligations; challenges inherent in Chemed's growth strategy; the
current shortage of qualified nurses, other healthcare professionals and
licensed plumbing and drain cleaning technicians; Chemed’s dependence on
patient referral sources; and other factors detailed under the caption
"Description of Business by Segment" or "Risk Factors" in Chemed’s most
recent report on form 10-Q or 10-K and its other filings with the
Securities and Exchange Commission. You are cautioned not to place undue
reliance on such forward-looking statements and there are no assurances
that the matters contained in such statements will be achieved.

Adjustments to reconcile net income to net cash provided by
operating activities:

Depreciation and amortization

10,229

9,294

Litigation settlement

6,000

-

Stock option expense

4,089

3,653

Benefit for deferred income taxes

(3,489

)

(2,807

)

Noncash long-term incentive compensation

1,119

1,721

Amortization of restricted stock awards

-

291

Amortization of debt issuance costs

76

128

Changes in operating assets and liabilities

(Increase)/decrease in accounts receivable

(81

)

1,591

(Increase)/decrease in inventories

(610

)

60

Decrease in prepaid expenses

6

1,045

Increase/(decrease) in accounts payable and other current liabilities

348

(7,911

)

Change in current income taxes

9,219

13,642

Increase in other assets

(5,006

)

(4,263

)

Increase in other liabilities

6,459

3,758

Other sources/(uses)

559

(5

)

Net cash provided by operating activities

73,585

65,193

Cash Flows from Investing Activities

Capital expenditures

(13,866

)

(12,648

)

Business combinations

-

(1,450

)

Other (uses)/sources

(68

)

181

Net cash used by investing activities

(13,934

)

(13,917

)

Cash Flows from Financing Activities

Proceeds from revolving line of credit

125,100

134,300

Payments on revolving line of credit

(114,300

)

(90,500

)

Purchase of treasury stock

(49,250

)

(81,125

)

Change in cash overdrafts payable

(13,303

)

(6,671

)

Proceeds from exercise of stock options

11,827

8,923

Capital stock surrendered to pay taxes on stock-based compensation

(11,170

)

(6,377

)

Dividends paid

(4,799

)

(4,533

)

Payments on other long-term debt

-

(2,500

)

Other sources/(uses)

181

(228

)

Net cash used by financing activities

(55,714

)

(48,711

)

Increase in Cash and Cash Equivalents

3,937

2,565

Cash and cash equivalents at beginning of year

4,831

11,121

Cash and cash equivalents at end of period

$

8,768

$

13,686

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING STATEMENTS OF INCOME

FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2019

Service revenues and sales (a)

$

306,781

$

155,253

$

-

$

462,034

Cost of services provided and goods sold

239,743

82,208

-

321,951

Selling, general and administrative expenses (a)

21,536

39,601

12,892

74,029

Depreciation

4,708

4,963

39

9,710

Amortization

18

501

-

519

Other operating expenses (a)

6,354

(1

)

-

6,353

Total costs and expenses

272,359

127,272

12,931

412,562

Income/(loss) from operations

34,422

27,981

(12,931

)

49,472

Interest expense

(47

)

(95

)

(982

)

(1,124

)

Intercompany interest income/(expense)

4,394

2,195

(6,589

)

-

Other income-net

88

14

2,337

2,439

Income/(loss) before income taxes

38,857

30,095

(18,165

)

50,787

Income taxes (a)

(9,569

)

(7,109

)

10,558

(6,120

)

Net income/(loss)

$

29,288

$

22,986

$

(7,607

)

$

44,667

2018

Service revenues and sales (b)

$

292,013

$

147,163

$

-

$

439,176

Cost of services provided and goods sold

227,256

77,280

-

304,536

Selling, general and administrative expenses (b)

20,510

36,098

12,392

69,000

Depreciation

4,797

4,443

27

9,267

Amortization

-

27

-

27

Other operating expenses

(18

)

(33

)

-

(51

)

Total costs and expenses

252,545

117,815

12,419

382,779

Income/(loss) from operations

39,468

29,348

(12,419

)

56,397

Interest expense

(52

)

(91

)

(1,064

)

(1,207

)

Intercompany interest income/(expense)

3,095

1,677

(4,772

)

-

Other income-net

142

16

860

1,018

Income/(loss) before income taxes

42,653

30,950

(17,395

)

56,208

Income taxes (b)

(10,638

)

(8,012

)

7,438

(11,212

)

Net income/(loss)

$

32,015

$

22,938

$

(9,957

)

$

44,996

The "Footnotes to Financial Statements" are integral parts of this
financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATING SUMMARY OF EBITDA

FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018

(in thousands)(unaudited)

Chemed

VITAS

Roto-Rooter

Corporate

Consolidated

2019

Net income/(loss)

$

29,288

$

22,986

$

(7,607

)

$

44,667

Add/(deduct):

Interest expense

47

95

982

1,124

Income taxes

9,569

7,109

(10,558

)

6,120

Depreciation

4,708

4,963

39

9,710

Amortization

18

501

-

519

EBITDA

43,630

35,654

(17,144

)

62,140

Add/(deduct):

Intercompany interest income/(expense)

(4,394

)

(2,195

)

6,589

-

Interest income

(88

)

(14

)

-

(102

)

Litigation settlement

6,000

-

-

6,000

Non cash ASC 842 expenses/(benefit)

656

55

(163

)

548

Medicare cap sequestration adjustment

515

-

-

515

Acquisition expenses

-

-

120

120

Stock option expense

-

-

4,089

4,089

Long-term incentive compensation

-

-

1,488

1,488

Adjusted EBITDA

$

46,319

$

33,500

$

(5,021

)

$

74,798

2018

Net income/(loss)

$

32,015

$

22,938

$

(9,957

)

$

44,996

Add/(deduct):

Interest expense

52

91

1,064

1,207

Income taxes

10,638

8,012

(7,438

)

11,212

Depreciation

4,797

4,443

27

9,267

Amortization

-

27

-

27

EBITDA

47,502

35,511

(16,304

)

66,709

Add/(deduct):

Intercompany interest income/(expense)

(3,095

)

(1,677

)

4,772

-

Interest income

(142

)

(16

)

-

(158

)

Amortization of stock awards

70

65

156

291

Medicare cap sequestration adjustment

352

-

-

352

Stock option expense

-

-

3,653

3,653

Long-term incentive compensation

-

-

1,920

1,920

Adjusted EBITDA

$

44,687

$

33,883

$

(5,803

)

$

72,767

The "Footnotes to Financial Statements" are integral parts of this
financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

RECONCILIATION OF ADJUSTED NET INCOME

(in thousands, except per share data)(unaudited)

Three Months Ended March 31,

2019

2018

Net income as reported

$

44,667

$

44,996

Add/(deduct) pre-tax cost of:

Litigation settlement

6,000

-

Stock option expense

4,089

3,653

Long-term incentive compensation

1,488

1,920

Non cash ASC 842 expenses

548

-

Medicare cap sequestration adjustment

515

352

Amortization of acquired and cancelled franchise agreements

441

-

Acquisition expenses

120

-

Add/(deduct) tax impacts:

Tax impact of the above pre-tax adjustments (1)

(2,961

)

(1,272

)

Excess tax benefits on stock compensation

(6,732

)

(3,798

)

Adjusted net income

$

48,175

$

45,851

Diluted Earnings Per Share As Reported

Net income

$

2.70

$

2.66

Average number of shares outstanding

16,525

16,887

Adjusted Diluted Earnings Per Share

Adjusted net income

$

2.92

$

2.72

Average number of shares outstanding

16,525

16,887

(1)

The tax impact of pre-tax adjustments was calculated using the
effective tax rate of the operating unit for which each adjustment
is associated.

The "Footnotes to Financial Statements" are integral parts of this
financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

OPERATING STATISTICS FOR VITAS SEGMENT

(unaudited)

Three Months Ended March 31,

OPERATING STATISTICS

2019

2018

Net revenue ($000) (c)

Homecare

$

258,847

$

241,031

Inpatient

22,570

22,108

Continuous care

32,244

30,766

Other

2,010

1,741

Subtotal

$

315,671

$

295,646

Room and board, net

(2,542

)

(2,618

)

Contractual allowances

(2,948

)

(2,833

)

Medicare cap allowance

(3,400

)

1,818

Net Revenue

$

306,781

$

292,013

Net revenue as a percent of total before Medicare cap allowance

Homecare

82.0

%

81.5

Inpatient

7.1

7.5

Continuous care

10.2

10.4

Other

0.7

0.6

Subtotal

100.0

100.0

Room and board, net

(0.9

)

(0.9

)

Contractual allowances

(1.0

)

(0.9

)

Medicare cap allowance

(0.9

)

0.6

Net Revenue

97.2

%

98.8

Average daily census ("ADC") (days)

Homecare

14,243

13,162

Nursing home

3,254

3,215

Routine homecare

17,497

16,377

Inpatient

360

352

Continuous care

488

480

Total

18,345

17,209

Total Admissions

17,758

18,279

Total Discharges

17,339

17,558

Average length of stay (days)

91.3

87.9

Median length of stay (days)

15.0

15.0

ADC by major diagnosis

Neurological

19.9

%

18.5

Cerebro

35.6

36.2

Cancer

13.1

13.9

Cardio

16.9

16.4

Respiratory

8.2

8.2

Other

6.3

6.8

Total

100.0

%

100.0

Admissions by major diagnosis

Neurological

12.8

%

11.4

Cerebro

20.7

22.6

Cancer

28.0

28.0

Cardio

16.3

15.5

Respiratory

12.0

11.7

Other

10.2

10.8

Total

100.0

%

100.0

Direct patient care margins (d)

Routine homecare

52.7

%

52.1

Inpatient

6.5

7.5

Continuous care

18.2

17.7

Homecare margin drivers (dollars per patient day)

Labor costs

$

59.42

$

58.63

Combined drug, home medical equipment and medical supplies cost

13.08

14.47

Inpatient margin drivers (dollars per patient day)

Labor costs

$

364.62

$

362.75

Continuous care margin drivers (dollars per patient day)

Labor costs

$

582.54

$

567.51

Estimated uncollectible accounts as a percent of revenues

1.0

%

1.0

Accounts receivable --

Days of revenue outstanding- excluding unapplied Medicare payments

34.9

32.6

Days of revenue outstanding- including unapplied Medicare payments

23.3

22.6

The "Footnotes to Financial Statements" are integral parts of this
financial information.

CHEMED CORPORATION AND SUBSIDIARY COMPANIES

FOOTNOTES TO FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018

(unaudited)

(a)

Included in the results of operations for the three months ended
March 31, 2019, are the following significant credits/(charges)
which may not be indicative of ongoing operations (in thousands):

VITAS

Roto-Rooter

Corporate

Total

Service revenues and sales:

Medicare cap sequestration adjustment

$

(515

)

$

-

$

-

$

(515

)

Selling, general and administrative expenses:

Non cash ASC 842 (expenses)/benefit

(656

)

(55

)

163

(548

)

Amortization of acquired and cancelled franchise agreements

-

(441

)

-

(441

)

Acquisition expense

-

-

(120

)

(120

)

Stock option expense

-

-

(4,089

)

(4,089

)

Long term incentive compensation

-

-

(1,488

)

(1,488

)

Other operating expenses:

Litigation settlement

(6,000

)

-

-

(6,000

)

Pretax impact on earnings

(7,171

)

(496

)

(5,534

)

(13,201

)

Excess tax benefits on stock compensation

-

-

6,732

6,732

Income tax benefit on the above

1,819

132

1,010

2,961

After-tax impact on earnings

$

(5,352

)

$

(364

)

$

2,208

$

(3,508

)

(b)

Included in the results of operations for the three months ended
March 31, 2018, are the following significant credits/(charges)
which may not be indicative of ongoing operations (in thousands):

VITAS

Corporate

Total

Service revenues and sales:

Medicare cap sequestration adjustment

$

(352

)

$

-

$

(352

)

Selling, general and administrative expenses:

Stock option expense

-

(3,653

)

(3,653

)

Long-term incentive compensation

-

(1,920

)

(1,920

)

Pretax impact on earnings

(352

)

(5,573

)

(5,925

)

Excess tax benefits on stock compensation

-

3,798

3,798

Income tax benefit on the above

89

1,183

1,272

After-tax impact on earnings

$

(263

)

$

(592

)

$

(855

)

(c)

VITAS has 12 large (greater than 450 ADC), 18 medium (greater than
200 but less than 450 ADC) and 17 small (less than 200 ADC)
hospice programs. Of VITAS' 30 unique Medicare provider numbers,
25 provider numbers have a Medicare cap cushion of 5% or greater,
two provider number has a cap cushion between 0% and 5% and three
provider numbers have a Medicare cap billing limitation for the
2019 Medicare cap period.